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4: Kramer's Snack Company (KSC) use the capital asset pricing model to estimate its weighted average cost of capital. The beta of KSC is 1.15

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4: Kramer's Snack Company (KSC) use the capital asset pricing model to estimate its weighted average cost of capital. The beta of KSC is 1.15 , the risk-free rate is 2%, and the return on the market portfolio is 9%. KSC has 25% of its capital from a bond issue and 75% from stock issues. The yield on its bonds is 5%. Determine KSC's weighted average cost of capital (ignore taxes)

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